Growth and decline of a business Flashcards
1
Q
Factors that contribute to decline of a business
A
Poor location, lack of planning, failure to meet needs or consumers
2
Q
Voluntary cessation
A
Owners ceases to operate the business on their own accord
3
Q
Involuntary Cessation
A
Owners forces to cease trading by the creaditors
4
Q
Liquidation
A
When an independent and qualified person (liquidator) is appointed to take control of the business with the intention of selling all the companies assets.
5
Q
Receivership
A
Where a business has a receiver that takes charge of the affairs of the business
6
Q
Insolvent Liquidation
A
Creditors (voluntary)
Court (involuntary)
7
Q
Insolvent
A
Where a debtor can’t pay the debts they owe
